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<br />Preparedness Grants Manual <br />distribution strategy and related sustainment costs if the grant expenditure for these items is over <br />$100,000. The Inventory Management Plan is associated with but distinct from the Distribution <br />Management Plan, which addresses how supplies will be distributed in an emergency. For more <br />information on distribution management planning, see FEMA’s Distribution Management Plan Guide <br />2.0. <br />If grant expenditures exceed the minimum threshold, the five-year inventory management plan will <br />be developed by the recipient and monitored by FEMA. FEMA will provide program oversight and <br />technical assistance (TA) as it relates to the purchase of critical emergency supplies. FEMA will <br />establish guidelines and requirements for the purchase of these supplies and monitor development <br />and status of the recipient’s inventory management plan. <br />Recipients are strongly encouraged to consult with their respective FEMA Regional Logistics Chief <br />regarding disaster logistics-related issues. States are further encouraged to share their FEMA <br />approved plan with local jurisdictions and tribes. <br />Table 2: Critical Emergency Supplies Allowability <br />Grant Program <br />HSGP (SHSP, UASI) <br />HSGP (OPSG) <br />THSGP <br />Allowed <br />Yes <br />No <br />Yes <br />NSGP No <br />Surface Transportation <br />Security Grants (TSGP, <br />IBSGP, IPR Program) <br />No <br />PSGP No <br />EMPG Program Yes <br />3.3.Maintenance and Sustainment <br />The use of FEMA preparedness grant funds for maintenance contracts or agreements, warranty <br />coverage, repair or replacement costs, licenses, upgrades, and user fees are allowable under all <br />active and future grant awards, unless otherwise noted in the program-specific NOFO. These <br />contracts may exceed the POP if they are purchased incidental to the original purchase of the system <br />or equipment as long as the original purchase of the system or equipment is consistent with that <br />which is typically provided for, or available through, these types of agreements, warranties, or <br />contracts. When purchasing a stand-alone warranty or extending an existing maintenance contract <br />on an already-owned piece of equipment system, coverage purchased may not exceed the POP of <br />the award used to purchase the maintenance agreement or warranty. As with warranties and <br />maintenance agreements, this extends to licenses and user fees as well. <br />Preparedness grant funds are intended to support the Goal and fund activities and projects that <br />build and sustain the capabilities necessary to prevent, protect against, mitigate the effects of, <br />respond to, and recover from those threats and hazards that pose the greatest risk to the security of <br />15